Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported July 31, 2026 · Beat 5 of last 7 quarters
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Cameco's reaffirmed production guidance and strong contracting discipline signal continued tightness in the uranium market, supporting the case for new supply investments. The Westinghouse AP1000 pipeline of 91 reactors, backed by U.S. government programs, underscores the accelerating demand for nuclear fuel and services, which could drive long-term growth for Cameco's uranium and fuel services segments. The company's increased stake in Cigar Lake reinforces its commitment to owning Tier 1 assets essential for the AI-driven electricity buildout.
Second quarter results were lower year-over-year, primarily due to the absence of the large Westinghouse payment related to the Dukovany project in 2025. Underlying fundamentals remained strong, with improved realized prices in both uranium and fuel services. Operational disruptions at Key Lake, McArthur River, and Cigar Lake were resolved without impacting annual guidance. Cameco closed the acquisition of an increased ownership interest in Cigar Lake during the quarter. Westinghouse disclosed a pipeline of 91 AP1000 reactors and provided detailed unit economics, including a 40–45% share of project value.
Management reaffirmed its 2026 production guidance, with uranium production of 19.5–21.5 million pounds. The long-term uranium price is strengthening, with market-related contract floors now in the high-$70s escalated and ceilings at $160 escalated. Cameco continues to layer in contracts with downside protection and upside exposure, while remaining disciplined on pricing. The Westinghouse pipeline of 91 AP1000 reactors is expected to drive significant future backlog growth, supported by the DOE's $17.5 billion conditional commitment for long-lead items. Management emphasized that the next phase of nuclear growth will be defined by execution, and Cameco's Tier 1 assets, flexible supply, and strong balance sheet position it to capture long-term value.
“We are still not at replacement rate demand across the industry. We still don't have utilities coming forward and collectively buying at a volume that replaces what they consume under existing contracts. And yet we found ourselves back into a mid-90s long-term uranium price on its way to 3 digits likely.”
on Uranium market strength
“We are in the business of being disciplined and looking forward to capture that long-term value with those utilities who have come to realize that security of supply is important.”
on Contracting discipline
“We are expecting to see a very positive trend on the backlog as we go forward through time.”
on Westinghouse backlog outlook
Can you describe the milestones for the DOE $17.5 billion loan program and the engagement from utilities?
Dominic Kieran noted the next step is moving to definitive agreements, which will involve specific U.S. utilities and the Department of Energy. He was limited in what he could say due to SEC rules.
What is the strategic rationale for the potential Westinghouse IPO?
Management declined to comment due to SEC restrictions, but Tim Gitzel confirmed that Cameco and Brookfield control Westinghouse today and do not expect that to change.
Is the new order level a steady state, and how should we interpret the backlog and unit economics?
Dominic Kieran explained that new orders entered are cumulative for the year, with the larger portion flowing into backlog. He expects a positive trend in backlog as AP1000 deployments progress. He also clarified that the 40–45% share and ~20% EBITDA margin are averages, with 50% of revenue recognized in the first 5 years for initial projects.